Nvidia to Release Q1 Earnings Report Today
Nvidia stock might not climb very high after the company releases its quarterly earnings report later today.
Quick overview
- Nvidia is set to report its Q1 2025 earnings today, with expectations of substantial revenue growth but concerns over competition in China.
- The company is facing challenges due to steep fines and restrictions on selling high-end GPUs in China, which may impact its earnings.
- Despite a projected 66% revenue increase, Nvidia's growth has slowed significantly compared to last year, causing investor apprehension.
- Analysts predict Nvidia could earn $43.3 billion across all markets, but this falls short of previous expectations, leading to potential stock declines.
Later today, Nvidia (NVDA) will report its earnings for the first fiscal quarter of 2025, with the expectation that its revenue will show substantial growth from the previous quarter.
Nvidia is facing fierce competition in China, especially in the face of steep fines when it comes to selling its highest end GPUs in that market. As a result, its Q1 earnings will likely take a hit, but we will know more about how the restrictions have affected their income when the company releases its quarterly earnings later today.
Even though Nvidia is expected to have increased its revenue by 66% in April, its gains have slowed compared to the previous timeframe last year when its revenue tripled. The slowdown the company is experiencing has investors somewhat worried. Nvidia’s stock is up just 0.34% today, though it did jump 3% on Tuesday, partly in anticipation of the earnings report but mostly due to the delay on new tariffs.
Should You Buy Nvidia Now?
When Nvidia reports on its earnings, we do expect the stock to increase in value, but we also believe that investors will be disappointed by how its troubles in China have impacted the company. Nvidia was once the fastest growing stock in the world and had the second highest market cap next to Apple (AAPL). Its growth has slowed significantly this year, though, due to hefty fines, an investigation from Chinese authorities, and reports of new competition emerging onto the market.
Nvidia is expected to bring in $6.2 billion from China alone for its first 2025 quarter, but it could have achieved so much more if it was not dealing with such severe penalties and restrictions in that market.
For the past three months, the Trump administration has banned the sale of Nvidia’s H20 chips in China, which is open of the most powerful and popular processing chips that Nvidia makes. The company has had to make due with selling lower performing chips with less processing power in that specific market. This has opened the door for Nvidia competitor Huawei to make their own competing powerful AI chip.
The company could bring in about $43.3 billion for all markets, which is commendable but far below where analysts expected the company to perform this time last year. That will put a dampener on the company’s report and hurt its stock performance. Investors should hold off buying Nvidia stock right now, though, since it could drop after the report or could climb only slightly.
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